Government Actively Supports Administrative Integration of Gyeongbuk and Daegu... Establishes Basis for 'Local Government Self-Fund'

'Minsheng Discussion Forum' Held on the 20th at Yeungnam University, Gyeongbuk
Cost Support and Special Privileges Provided Upon Integration Plan Preparation
Establishment of Fund Investment Basis to Address Local Extinction

The Ministry of the Interior and Safety has decided to actively support the administrative integration of Gyeongbuk and Daegu by providing financial support and administrative and fiscal special measures. It will also establish a basis for local governments to create their own funds to prevent local extinction and promote investment.

On the 20th, the government announced these plans at the "Public Discussion on Livelihood with the People - The 26th Northeast Asia Advanced Manufacturing Innovation Hub Gyeongbuk" held at Yeungnam University in Gyeongbuk.

[Image source=Yonhap News]

Earlier, on the 4th, Minister of the Interior and Safety Lee Sang-min, Chairman of the Local Era Committee Woo Dong-gi, Mayor of Daegu Hong Joon-pyo, and Governor of Gyeongbuk Lee Cheol-woo gathered at the Government Seoul Office to discuss the promotion plan for the integration of Daegu and Gyeongbuk. The government decided to consider supporting integration costs and granting special measures if Daegu and Gyeongbuk prepare an integration plan. Additionally, a joint "Pan-Government Integration Support Group" will be formed with related ministries to specify support measures, and efforts will be made to enact a special law within this year aiming for the launch of the integrated local government on July 1, 2026.

The Ministry of the Interior and Safety explained, "The administrative integration of Gyeongbuk and Daegu will not only serve as a momentum for regional development but is also expected to be the starting point for transitioning from a unipolar metropolitan area centered on the capital region to a multipolar system by forming a metropolitan economic zone comparable to the capital area."

Furthermore, the Ministry plans to establish a basis for local governments to create their own funds. This measure considers the many cases where local governments in depopulated areas have faced difficulties in attracting various projects to revitalize the local economy due to lack of resources.

Accordingly, the Ministry of the Interior and Safety plans to revise relevant regulations to allow local governments to invest in their own funds so that they can promote projects related to responding to local extinction in connection with private capital.

An official from the Ministry of the Interior and Safety stated, "In some non-capital regions, including depopulated areas, public funds with a catalytic nature are necessary to activate private investment. Since there is currently no legal basis for local governments to invest in response to local extinction, we will revise related regulations to support the promotion of various projects."

This content was produced with the assistance of AI translation services.